F 
845 


BIG  SMOKY 
SILVER  MINING  CO. 


BANCiOFT 
LilRAHY 


University  of  California  •  Berkeley 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/bigsmokysilvermiOObigsrich 


^^: 


BIG  SMOKY 


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JERSEY    CITY: 

PRINTED    BY    JOHN    H.     LYON. 
1866. 


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BIG  SMOKY 


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JERSEY    CITY: 

PRINTED    BY    JOHN    H.     LYON 
1866. 


BIG   SMOKY         2^^, 

SILVER  MINING  COMPANY, 

Capital  Stock,   .   •   .    .   $600,000, 

DIVIDED  INTO  20,000  SHARERS,  $30  EACH. 
WORKIIVO   CAPITAL., #160,000. 


SMOKY  YALLEY  MINING   DISTEIOT, 

LANDER  COUNTY,  NEVADA. 


DSTo.  71  Broad^svay,  Ne^vs^  York  City. 


OFFICERS : 


MOSES  CHAMBERLAIN,  President. 
ADON  SMITH,  Jr.,  Yice  President. 
WM.  H.  DUDLEY,  Secretary. 
JOSEPH  B.  HOYT,  Treasurer. 
H.  W.  JOHNSON,  Attorney. 

TRUSTEES : 

MOSES  CHAMBERLIN, Ill  West  Foett  second  St. 

ADON  SMITH,  Jr.,      ...    - 10  South  St. 

WM.  H.  DUDLEY, 71  Broadway. 

JOSEPH  B.  HOYT, Hott  Bros.,  28  Spruce  St. 

H.  W.  JOHNSON, 37  Wall  St. 

A.  W.  BUDLONG, West  Twentysecond  St.,  N.  R. 

JAMES  GOPSILL, 1  ExcnANQE  Place,  Jersey  City. 


v^iA)iuij  ^1  -■\o)\'ovi(\^^  -iri 


BIG   SMOKY 

SILYER   MINING  COMPANY. 


^>  ♦  •^ 


ORGANIZATION. 

This  Company  was  organized  under  the  general  in- 
corporating laws  of  the  State  of  New  York,  in  accor- 
dance with  the  provisions  of  the  Act,  entitled  "An 
act  to  authorize  the  formation  of  corporations  for  Man- 
ufacturing, Mining,  Mechanical,  or  Chemical  purposes," 
passed  February  fth,  1848,  with  a  full  paid  Capital 
Stock  of  $600,000,  divided  into  20,000  shares  of  $30 
each,  for  the  purpose  of  carrying  on  the  business  of 
Silver  Mining  in  the  State  of  Nevada. 

PROPERTY. 

The  mining  property  embraced  in  the  corporation 
consists  of  the  celebrated  "Big  Smoky  Mine,"  situ- 
ated on  the  east  side  of  the  mountain  bordering  the 
great  Smoky  Yalley  in  Lander  county,  Nevada. 

This  mine  was  discovered  and  located  on  the  13  th 
day  of  March,  1863,  by  seven  persons,  and  contains 
1400  lineal  feet  upon  the  lode,  and  varies  in  width  on 
the  out-crop  of  the  vein  from  30  to  60  feet,  rising  in 
places  to  the  height  of  upwards  of  20  feet,  showing 
itself  prominently  the  full  length  of  the  mine.  It  is 
situated  in  the  town  of  Geneva,  about  12  miles  from 
the  City  of  Austin,  Reese  River,  and  four  miles  from 
the  overland  mail  and  stage  road,  and  telegraph  line 
to  San  Francisco. 

It  is  easy  of  access  for  any  kind  of  freight  which 
can  be  transported  upon  wagons,  deliverable  directly 


6 

upon  the  property  of  the  Company,  thereby  possessing 
the  advantage  of  quick  communication  and  ready  sup  ■ 
plies. 

The  Company  also  own  a  fine  timber  tract  of  421 
acres,  through  which  the  vein  runs,  together  with  136 
acres,  enclosing  a  water  right  of  one  mile  in  length 
with  a  fall  of  75  feet,  running  upwards  of  150  inches 
of  water,  mill  measurement. 

CLIMATE    AND    PRODUCTIONS. 

The  climate  of  Reese  River  is  delightful,  Austin 
lying  three  hundred  and  ninety  miles  west  from  Salt 
Lake  City,  and  about  one  hundred  miles  farther  south 
than  the  city  of  New  York.  Snow  is  rarely  seen  in  the 
valleys,  and  the  month  of  April  generally  finds  but  little 
on  the  mountain  tops.  Mining  operations  are  carried  on 
at  all  seasons  alike.  Rich  agricultural  lands  are  found 
in  the  valleys,  once  thought  to  be  worthless,  but  now 
producing  vegetables  of  all  kinds  in  great  abundance. 
Last  year  one  thousand  acres  in  one  valley  sown  to 
barley,  produced  from  30  to  50  bushels  per  acre.  As 
a  general  thing  wood  and  water  are  scarce,  the  usual 
feature  of  a  rich  mineral  section.  About  seven  miles 
from  the  mill  are  found  inexhaustable  supplies  of  salt, 
which  is  so  necessary  in  the  reduction  of  silver  ores, 
and  from  which  the  mills  of  Reese  River  are  supplied. 
From  ten  to  twenty  per  cent  of  salt  is  added  to  the 
pulverized  ore  before  roasting,  having  the  effect  of 
developing  through  the  heat,  a  chlorine  gas,  which 
has  a  strong  affinity  for  silver,  and  forms  after  desul- 
phurization,  a  chloride  of  silver.  The  base  metals  are 
thereby  mostly  volatilized,  or  driven  off  in  a  vapor, 
thus  becoming  separated  from  the  silver,  which  is 
then  readily  amalgamated  in  the  pans  by  the  use  of 
quicksilver. 

PACIFIC   RAIL  ROAD. 

The  Pacific  Rail  Road  now  nearly  completed  into 
Nevada,    adds  a  new  and  valuable  feature   to  the 


mining  localities  on  its  route.  The  Nevada  mountains 
scaled,  the  level  route  from  Austin  to  Virginia  City,  166 
miles  farther  east,  will  be  but  a  short  and  easy  task, 
but  little  preparation  being  required  the  full  distance. 
The  eastern  end  of  the  road  now  at  Ft.  Kearney,  800 
miles  from  Salt  Lake  City,  and  1190  miles  from  Aus- 
tin, is  over  the  great  western  plains  a  large  portion  of 
the  distance,  requiring  but  little  preparation  to  be 
placed  in  complete  running  order. 

The  original  estimate  of  the  company  to  have  the 
road  fully  equipped  to  San  Francisco  during  the  sea- 
son of  1868,  seems  now  probable,  although  a  couple 
of  seasons  may  be  required  for  its  final  completion. 
Thus  will  Austin  soon  receive  the  full  benefit  of  trade 
and  communication,  and  only  six  days  ride  from  the 
city  of  New  York.  The  immense  advantage  of  posses 
sing  property  thus  situated  must  be  apparent ;  not 
only  in  the  safety  and  security  of  the  property  itself 
from  depredations  and  accidents,  incident  to  a  new  sec- 
tion, but  in  being  under  the  immediate  control  of  the 
shareholders,  and  where  daily  and  immediate  informa- 
tion can  be  obtained  of  the  progress  and  prosperity  of 
the  company's  operations. 

TITLE   TO   THE   PROPERTY. 

The  discovery  and  location  of  this  mine  was  made- 
previous  to  that  of  any  other  mine  in  the  district,  lying 
upon  the  eastern  side  and  slope  of  the  mountains  bor- 
dering Smoky  Valley,  and  was  also  the  first  choice  of 
location  upon  the  Big  Smoky  Lode ;  consequently  it 
holds  a  priority  of  right  over  all  other  mining  inte- 
rests in  its  vicinity,  and  there  can  therefore  never  be 
any  dispute  or  cloud  upon  its  title,  which  was  obtained 
in  accordance  with  the  district  and  state  laws,  and  by 
virtue  of  which  the  owners  have  always  held  a  full 
and  quiet  possession  of  it.  The  same  title  possessed 
by  the  original  company  has  been  transferred  to  the 
Big  Smoky  Company,  whose  Agent  and  Superintend- 
ent is  now  in  full  possession  of  the  mine. 


DEVELOPMENT    OF    THE    MINE. 

The  mine  was  at  first  developed  somewhat  slowly  ; 
but  by  the  aid  of  capital,  during  the  last  year  the 
opening  of  the  vein  has  been  completed,  with  such  re- 
sults as  to  prove  that  there  is  probably  no  more  valu- 
able mine  on  the  Pacific  coast ;  and  that  it  is  worthy 
of  being  called  as  Mr.  Walter  W.  Palmer,  the  former 
superintendent  of  the  great  Ophir  mine  terms  it,  "  the 
King  Mine  of  the  Pacific  coast." 

The  most  important  work  of  the  company  is  their 
last  tunnel  342  feet  in  length,  which  pierces  the  lode 
at  a  depth  of  148  feet  from  the  surface.  The  lode  at. 
this  point  is  28  feet  in  thickness,  and  has  beautiful 
and  well  defined  walls,  with  six  inches  of  clay  lying 
upon  each  side  of  the  vein,  proving  conclusively  that 
it  is  a  true  fissure  vein,  and  an  original  and  primitive 
formation. 

Its  richest  pay  streak  is  ten  feet  thick,  and  upwards 
of  200  tons  of  ore  is  now  lying  at  the  mouth  of  the 
tunnel,  ready  for  the  machinery  to  extract  the  precious 
metal.  The  Everett  Company  adjoining,  towards  the 
valley,  have  an  incline  by  which  they  are  working  their 
mine,  about  75  feet  from  the  Big  Smoky  Company's  line, 
and  about  3D0  feet  from  their  tunnel.  The  vein  where 
pierced  by  them  in  two  different  places  is  34  feet  in 
thickness,  and  after  striking  water  they  found  the  ores 
rich  in  gold  as  well  as  silver. 

The  present  tunnel  of  the  Company  has  pierced  the 
vein  above  water,  consequently  its  richest  ores  are  yet 
to  be  disclosed  by  deeper  developments  of  the  mine. 

A  new  surveyed  tunnel,  commencing  a  short  dis- 
tance from  the  bank  of  the  stream,  and  running  a  dis- 
tance of  about  1200  feet,  strikes  the  vein  566  feet 
below  the  surface.  When  the  very  steep  ascent  of  the 
vein  up  the  side  of  the  mountain  is  taken  into  consid- 
eration, giving  an  average  of  upwards  of  600  feet  in 
height  of  the  vein  above  the  proposed  tunnel,  abun- 


dantly  draining  the  whole  mine  above  it,  some  estimate 
can  be  formed  of  its  true  value  and  capacity  for  pro- 
ducing ore  for  a  long  period  of  time.  20  cubic  feet 
of  ore  being  required  for  a  ton's  weight,*  we  have  an 
aggregate  amount  of  over  400,000  tons  to  be  extract- 
ed from  this  channel  of  10  feet.  The  average  width 
of  the  vein  may  safely  be  placed  at  30  feet,  which  will 
give  a  total  of  about  a  million  and  a  quarter  of  tons  of 
ore  to  be  extracted  from  the  full  width  of  the  vein  or 
channel  of  30  feet.  By  the  aid  of  machinery  for  drain- 
ing and  hoisting,  at  least  1200  feet  of  perpendicular 
vein,  (the  same  depth  attained  in  the  Hay  ward  Mine, 
Cal.)  may  be  easily  taken  from  below  the  tunnel,  giving 
upwards  of  1600  feet  of  perpendicular  vein  matter  of 
sulphuret  ore,  or  a  total  production  of  5,000,000  tons. 

VALUE  OF  THE  ORES. 

The  value  of  these  ores  as  taken  from  the  present 
tunnel,  show  an  average  assay  of  $235  per  ton,  from 
the  10  feet  portion  of  the  mine,  being  its  best  ore. 
This  result  was  from  the  average  mass  of  crushed  ore 
at  the  mill,  after  it  was  prepared  for  amalgamating. 
These  figures  and  results  are  taken  from  the  old  Com- 
pany's records  of  July  1865,  in  which  month  the  open- 
ing of  the  mine  was  completed  and  the  ore  worked  at 
the  Butte  Quartz  mill  near  Austin  City.f 

The  gross  proceeds  of  this  crushing  (two  tons  of 
average  ore),  was  $96  per  ton,  being  less  than  half  the 
silver  contained  in  the  ore.  This  result  was  attributed 
by  the  superintendent  of  the  mill,  to  his  being  unac- 
quainted with  the  peculiar  nature  of  the  ore  before 
working  it,  zinc  being  found  in  combination  with  the 
other  metals,  which  though  easily  worked  when  under- 
stood, required  a  different  treatment  which  this  work- 
ing had  developed.  He  proposed  to  work  the  rock  at 
another  trial  to  within  twenty  per  cent,  of  the  fire 

*  Miners  estimate  16  solid  cubic  feet  before  extracting,  or  20  cubic  feet  meas- 
ured in  the  cord,  a  cord  weighing  8  tons. 

f  See  statement  of  Mr.  Morris,  President  Butte  Mill. 


10 

assay,  obtaining  thereby  $188  per  ton.  The  Company 
feeling  confident  of  realizing  at  least  $100  per  ton  by 
a  proper  selection  of  their  ores  as  the  lowest  possible 
result,  decided  to  erect  a  mill  of  their  own  upon  the 
mine,  thereby  saving  the  enormous  expense  of  $75  per 
ton  charged  by  the  mill  for  working  their  rock.  The 
actual  cost  of  working  these  ores  will  not  vary  much 
from  $20  per  ton,  the  roasting  process  being  a  heavy 
item  of  the  expense. 

In  comparing  the  value  of  these  ores,  attention  might 
be  called  to  the  quarterly  report  of  the  Gould  &  Curry 
Company,  ending  March  31st,  1865,  as  required  by  the 
laws  of  Nevada,  and  which  give  as  their  production, 
"9,041  tons,  yielding  $477,183.98,  being  an  average 
of  $52.78  per  ton,"  and  costing  an  average  of  about 
$12  per  ton  for  working.* 

It  may  be  a  matter  of  interest  to  present  a  compari- 
son between  the  large  and  small  class  of  mineral  veins 
of  Navada,  as  proved  by  the  actual  production  in 
bullion ;  the  statements  being  obtained  from  the  books 
of  the  Assessors  of  the  two  sections  represented,  end- 
ing January  1st,  1866. 

The  six  companies  situated  upon  the  Comstock 
Lode,  and  lying  within  the  city  limits  of  Virginia 
City,  produced  in  the  third  quarter  of  1865,  $7,168,- 
000,  being  $14,336,000  for  the  six  months  ending 
January  1st,  1866.  The  ores  producing  this  result 
yielded  about  $40  per  ton,  one  half  being  profit. 
During  the  same  period  there  was  produced  from  the 
Reese  River  Mines,  (57  in  number),  $364,453,  the 
ores  averaging  $150  41  per  ton.  This  result  shows  a 
comparison  of  $2,389,333,  to  each  company  upon  the 
large  vein,  to  $6,393,  from  each  of  the  small  ones. 
This  difierence  is  due  to  the  enormous  "  quantity  "  of 
ore  produced  in  the  one,  and  the  small  amount  in  the 
other. 

The  Hayward  mine  of  California  is  now    paying 

*  See  list  of  Washoe  Mines. 


11 

$35,000  monthly  to  its  owners,  in  gold  ;  a  profit  equal 
to  24  per  cent,  upon  a  cash  capital  in  gold  coin  of 
$1,750,000.  This  mine  is  now  worked  from  a  depth 
of  1200  feet,  the  vein  being  25  feet  in  thickness,  and 
from  which  100  tons  of  ore  are  produced  daily,  yield- 
ing an  average  profit  of  $15  per  ton. 

From  San  Francisco  advices  of  the  9th  of  July, 
1866,  we  note  that  the  yield  of  the  mines  was  never 
better.  The  receipts  of  the  past  month  of  June,  in 
bullion,  gives  the  Hale  &  Norcross  Mine,  $100,000; 
Savage  Mine,  $130,000 ;  Crown  Point  Mine,  $105,000 ; 
Gould  &  Curry  Mine,  $146,000  ;  Imperial  Mine,  $61,- 
000  ;  Yellow  Jacket  Mine,  $260,000. 

Companies  possessitig  such  vast  bodies  of  ore,  which 
can  be  worked  at  even  a  very  small  profit,  can  always 
realize  enormous  dividends,  and  with  a  certainty  of 
continuance. 

This  important  feature  of  mining  is  presented  as  the 
great  and  general  characteristics  of  all  mining  coun- 
tries, not  simply  in  our  own  states  and  territories,  but 
in  all  parts  of  the  globe,  the  same  general  principles 
bringing  like  results. 

The  profits  of  mining  are  not  so  much  the  result  of 
very  rich  ores,  as  upon  the  great  and  "  permanent  sup- 
ply," which  pays  a  comparatively  moderate  profit. 
This  is  a  fact  worthy  of  consideration  in  connection 
with  the  mining  interest,  and  may  be  considered  one 
of  the  principal  reasons  of  the  many  failures  of  mining 
companies. 

With  a  constant  working  of  twenty  tons  of  ore  per 
day,  it  is  believed  that  the  stockholders  of  the  Big 
Smoky  will  realize  monthly  dividends,  aggregating 
yearly  the  capital  stock  of  the  company.  No  cal- 
culations have  been  made  thus  far  upon  the  water  or 
sulphuret  ores  of  the  mine  found  below  the  water 
level, "^  and  which  are  universally  estimated   by  the 

•The  term  "  water  level,"  refers  to  the  point  in  the  vein  where  the  water 
is  first  encountered  permanently,  requiring  thereafter  a  continual  drainage  of 
the  mine  in  the  extraction  of  its  ores.     The  ores  taken  out  of  this  water  are 


12 

mining  and  mill  men  of  Reese  River,  to  contain  more 
than  double  the  amount  of  silver,  than  is  found  above 
this  point  while  in  a  chloride  or  antimonial  state. 

SUPERINTENDENT. 

The  Company  have  secured  the  services  of  Mr. 
Gorham  H.  Moore,  of  Austin  City,  who  spent  about 
three  months  of  the  present  year  in  New  York,  where 
his  acquaintance  was  first  made  by  the  trustees.  Mr. 
Moore  was  among  the  early  pioneers  of  California, 
having  been  a  resident  on  the  Pacific  coast  since  1850, 
and  for  the  last  five  years  has  been  a  resident  of  Ne- 
vada, and  directly  interested  in  the  extensive  mining 
and  milling  interests  of  the  Comstock  Mines.  He  was 
intimately  known  by  the  secretary  during  his  residence 
in  Nevada,  and  it  is  but  just  to  say,  that  great  satisfac- 
tion is  felt  by  the  Company  in  having  secured  his  ser- 
vices, not  more  for  his  abundant  capabilities  of  filling 
the  position  than,  for  his  sterling  integrity  of  character. 
Success  and  sound  judgment  have  been  prominent 
features  of  Mr.  Moore's  life  on  the  Pacific  coast, ;  and 
his  predilections  for  this  particular  mine  since  its  first 
discovery,  a  fact  well  known  to  his  friends  at  Austin, 
explains  the  reason  of  his  accepting  the  position,  and 
serves  to  inspire  additional  confidence  in  its  future 
prosperity. 

THE    MILL. 

The  Company  have  made  arrangements  for  a  first 
class  20  stamp  Quartz  Mill  with  Mr.  Cyrus  Palmer,  of  the 
Miners  Foundry,  San  Francisco.  Mr.  Palmer's  atten- 
tion has  been  exclusively  devoted  to  the  building  of 


called  "  Sulphuret  Ores."  The  Big  Smoky  mine  will  have  400  feet  of  this 
class  of  ore  above  the  new  tunnel,  and  drained  by  it ;  and  can  easily  reach  a 
farther  depth  of  1200  feet  below  this  point,  by  the  use  of  machinery  for  hoist- 
ing and  draining,  acquiring  thereby  the  same  depth  attained  as  in  the  Hay- 
ward  mine,  which  recently  sold,  according  to  report,  for  nearly  $2,000,000  m 
gold. 


13 

quartz  machinery  for  fourteen  years,  and  his  practical 
knowledge  and  long  experience  in  this  particular 
branch,  enables  him  to  furnish  the  splendid  machinery 
which  his  establishment  produces,  and  which  has 
given  such  universal  satisfaction.  The  twelve  to 
sixteen  years  of  experience  of  the  foundries  of  the 
Pacific  coast,  which  have  made  quartz-milling  machi- 
nery a  speciality  for  most  of  the  time,  enables  them  to 
furnish  superior  machinery  for  practical  mining  pur- 
poses. Another  advantage  lies  in  the  fact,  of  being 
able  to  obtain  duplicate  machinery  in  case  of  any  ac- 
cident to  the  mill.  An  hour's  ride  of  the  Superintend- 
ent, from  the  mill  to  Austin,  places  him  in  telegraphic 
communication  with  the  foundry,  and  three  days  by 
express,  places  the.  new  machinery  in  his  possession. 
No  "new  processes,"  or  "  new  crushers,"  not  in  general 
use  among  the  mill  men  of  Nevada,  will  be  adopted 
to  ruin  the  prospects  of  the  Company.  New  crushing 
inventions  are  not  required  in  making  mining  success- 
ful, the  present  cost  by  a  stamp  battery  being  only 
about  three  dollars  per  ton  ;  a  machine  so  simple  in  its 
construction  as  to  be  within  easy  control  of  ordinary 
laborers,  and  not  liable  to  get  out  of  order. 

The  great  secret  so  much  desired,  and  of  such  im- 
mense value  in  quartz  mining,  is  in  bringing  to  light  some 
new  and  "  practical  method  "  of  saving  the  metal  after 
the  ore  is  pulverized  ;  the  loss  here  generally  ranging 
between  20  and  40  per  cent  of  the  fire  assay.  The 
methods  now  in  use  among  the  mill  men  in  Navada, 
are  the  only  methods  which  are  safe  for  practical  use. 
The  mill  men  of  Washoe,  especially  those  who  are 
directly  interested  in  the  Comstock  mines,  (the  majori- 
ty of  whom  have  also  had  many  years  of  experience 
in  California  mining,)  naturally  pursue  such  a  course 
as  secures  to  themselves  the  greatest  amount  of  profit 
on  their  investments ;  especially  after  having  spent 
immense  sums  in  experimenting  upon  new  theories 
and  processes.  The  present  course  pursued  by  them 
is  the  result  of  daily  experience  among  each  other. 


u 

The  Big  Smoky  Mill  will  have  twenty  stamps  of 
800  lbs  weight  each,  the  four  mortars  for  the  stamps 
weighing  3700  lbs  each.  Two  fan-blowers  in  front  of 
the  mortars  will  keep  the  screens  free  from  the  pul- 
verized ore.  Twelve  Wheeler  pans  will  be  put  into 
the  mill,  eight  for  regular  use,  and  four  for  reserve  and 
for  a  longer  amalgamation  of  a  high  grade  of  selected 
ores.  A  sixty  horse  power  engine,  with  two  sets 
of  tubular  boilers  for  alternate  use  45  x  16,  will  be 
used  to  obviate  any  delay  in  running  the  mill  which 
might  occur  by  breaking,  cleaning,  or  otherwise. 
The  roasting  furnaces  will  be  ample  for  roasting  twen- 
ty tons  per  day.  The  ore  will  be  run  from  the  mine 
directly  into  the  mill,  which  will  be  situated  only  a 
few  hundred  feet  from  the  mouth  of  the  new  tunnel, 
the  advantages  of  which  will  be  readily  appreciated. 

SALE    OF    ORES. 

Another  feature  of  revenue  to  the  Company,  lies  in 
their  ability  of  supplying  large  quantities  of  ore  to  mill 
and  mining  companies,  there  being  many  such  oppor- 
tunities, caused  by  various  reasons,  being  more  especi- 
ally the  case  with  companies  possessing  narrow  veins, 
causing  them  for  the  time  being  to  seek  supplies  from 
other  sources  than  their  own.  The  Company  have 
already  opportunites  of  thus  furnishing  supplies  on  long 
contracts,  receiving  a  share  of  the  gross  receipts  in 
bullion.  They  will  endeavor  to  induce  around  them 
from  time  to  time  as  many  companies  as  they  may  be 
able  to  supply.  They  will  also  afford  most  excellent 
opportunities  for  individual  enterprises  in  building 
mills,  wholly  disconnected  from  mining  lodes  of  their 
own,  but  based  upon  contracts  with  the  Company  for 
a  supply  of  ores  to  be  worked  upon  shares,  giving  a 
sure  and  remunerative  return  to  both  parties.  The 
company  will  be  able  to  supply  from  one  to  two  hun- 
dred tons  of  ore  daily  as  soon  as  sufficient  room  can 
be  made  in  the  mine  for  the  employment  of  the  work- 
men required. 


15 


REPORT    OF   JOHN   S.    MORRIS,    ESQ. 

CoRTLANDT  Street  Hotel,  N.  Y.,  Feb.  13,  1866. 
To  the  Big  Smoky  Silver  Mining  Co.,  N.  Y, : 

Gentlemen — By  request  of  your  Secretary,  I  take  pleas- 
ure in  making  a  statement  relative  to  the  working  of  the  Big 
Smoky  Company's  ores  at  the  Butte  Mill,  near  Austin,  Keese 
River,  of  which  at  that  time  I  had  the  honor  of  being  Presi- 
dent. 

There  were  two  tons  of  the  ore  worked  at  onr  mill,  which 
were  delivered  there  by  the  company  then  working  tlie  mine, 
known  as  the  Smoky  Valley  Gold  and  Silver  Mining  Co., 
and  which  was  brought  for  the  purpose  of  ascertaining  the 
true  value  of  the  rock  by  actual  returns  from  the  mill.  The 
result  obtained  was  only  a  trifle  over  $96  per  ton,  which 
much  disappointed  us  as  the  appearance  of  the  ore  indicated 
much  larger  returns. 

From  each  bucket  of  ore,  as  it  was  taken  from  the  battery, 
was  saved  a  small  sample  for  assay,  while  the  mass  of  the 
rock  was  roasted  for  amalgamating.  An  accurate  assay  of 
these  samples  combined  was  made,  giving  $235  per  ton. 

This  loss  of  about  $139  per  ton  was  caused  by  the  pres- 
ence of  zinc  in  combination  with  other  metals,  which  by 
our  manner  of  roasting  the  ore  was  driven  off,  so  as  to  carry 
this  body  of  silver,  or  most  of  it  with  the  zinc.  This  loss 
could  have  been  easily  saved,  had  we  understood  the  true 
character  of  the  ore  ;  a  knowledge  which  can  only  be  ob- 
tained by  similar  practical  tests,  but  when  once  understood 
renders  these  ores  easy  and  simple  in  their  reduction,  the 
zinc  not  being  a  difficult  metal  to  manage  when  once  under- 
stood. 

I  have  no  hesitation  in  saying  that  the  Big  Smoky  ore  can 
be  worked  to  within  20  per  cent,  of  the  fire  assay  without 
any  difficulty,  and  I  offered  at  the  time  to  work  a  few  hun- 
dred tons  for  them,  guaranteeing  to  work  to  within  20  per 
cent,  of  the  fire  assay. 

Had  not  the  Company  then  decided  to  secure  the  build- 
ing of  a  mill  for  themselves  on  their  mine,  they  could  have 
taken  their  ores  to  Austin  for  reduction  at  a  large  profit, 
and  have  secured  thereby  a  mill  from  those  profits,  and  in 
about  the  same  time  that  they  will  do  by  securing  capital  to 
do  it  for  them  ;  and  without  losing  a  large  portion  of  a  valu- 
able property. 


16 

The  ores  from  your  mine  are  of  a  very  solid  character, 
and  the  mineral  is  very  evenly  distributed^  and  I  would 
recommend  carefully  roasting  them  always,  and  when  once 
thoroughly  understood  by  your  Superintendent,  the  results 
must  be  satisfactory. 

1  should  consider  that  with  a  20  stamp  mill  well  con- 
structed, and  the  mill  and  mine  well  managed  by  practical 
and  energetic  men,  that  the  estimates  made  in  your  report 
were  below  the  actual  facts  to  be  realized. 

The  ores  are  there  in  large  quantities  and  they  are  undoubt- 
edly rich,  but  care  and  good  judgment  combined  with  energy 
are  necessary  for  successful  results  like  all  valuable  enter- 
prises, the  greater  their  magnitude  and  value,  the  more  cau- 
tion required. 

But  while  I  think  the  average  yield  of  the  ores  will  much 
exceed  the  estimates  you  have  made,  I  think  the  cost  of  work- 
ing them  for  at  least  two  years  yet,  will  be  about  $30  per 
ton,  on  account  of  the  very  high  prices  of  labor  there,  as 
well  as  the  heavy  expense  of  roasting  these  particular  ores, 
which  will  be  necessary  to  their  proper  reduction. 
Yery  respectfully  yours, 

John  S.  Morris. 

LETTER   FROM    EX-SHERIFF   MOORE,    OF    NEVADA. 

:t^Ew  York  City,  Feb.  19,  1866. 

To  the  Secretary  of  the  Big  Smohy  Silver  Mining  Co.,  71 
Broadway,  JT.  Y.  : 

Dear  Sir — From  our  acquaintance  for  a  number  of  years, 
it  affords  me  pleasure  to  give  your  Company  the  benefit  of 
any  knowledge  which  I  may  have  of  this  property  ;  but  I 
make  no  profession  to  deep  science  in  geology  or  metallurgy, 
and  have  more  confidence  myself  in  the  judgment  of  men 
who  have  been  practically  engaged  in  quartz  mining  for 
years,  than  in  those  who  base  their  opinions  upon  theory  and 
science.  For  sixteen  years  I  have  devoted  my  time  exclu- 
sively to  quartz  mining,  except  the  two  terms  of  my  service 
as  sheriff  in  Nevada,  and  have  universally  found  that  the 
men  in  whose  judgment  I  could  place  the  most  confidence, 
were  men  of  this  class. 

I  have  known  the  Big  Smoky  Mine  since  its  first  discov- 
ery;  and  after  the  vein  was  opened  by  the  present  tunnel, 
I  examined  it  carefully,  obtaining  many  assays  of  the  ore  in 
the  tunnel  for  my  own  satisfaction,  and  which  ranged  from 


17 


$250  to  $700  per  ton.  Hio^hcr  estimates  might  truthfullj 
and  safely  be  made  of  the  yield  of  the  ore  per  ton  than  you 
have  made;  and  I  think  your  Company  will  be  agreeably 
disappointed  in  this  respect. 

The  ores  are  of  the  "  Antimonial  Sulphnret"  class  so 
friable,  and  the  water  level  will  no  doubt  disclose  masses  of 
pure  antimonial  ore,  streaks  of  which  already  appear  several 
inches  in  thickness  in  the  bottom  of  the  tunnel,  indicating 
the  close  proximity  of  water.  Yeins  of  this  character  of  ore 
always  increase  in  richness  the  deeper  they  are  opened  into 
water.  I  have  taken  large  specimens  of  native  silver  ore 
from  the  vein  in  the  tunnel.  The  Big  Smoky  Mine  can 
easily  be  made  as  productive  as  any  mine  on  the  Pacific 
coast,  and  perhaps  I  may  safely  say,  second  to  none,  a  fact 
which  must  impress  itself  upon  the  mind  of  any  person  who 
examines  its  favorable  situation  for  deep  mining  and  drain- 
ing, the  mammoth  proportions  of  the  vein,  the  ore  in  masses 
now  in  sight,  the  wood  and  water,  and  the  ease  of  communi- 
cation in  all  re.^pects  for  a  company's  operations. 

The  working  of  the  ore  in  the  Butte  Mill,  as  appears  in 
Mr.  Morris'  statement  may  be  relied  upon.     I  have  known 
him  for  many  years  as  a  successful  and  practical  miner,  and 
he  is  a  gentleman  of  undoubted  ability  and  integrity. 
Most  respectfully  yours, 

GOKHAM  H.  MOOBE. 


REPORTS  OF  PROFESSORS  PALMER  AND  VEATCH. 

In  investigating  the  merits  of  this  mine,  the  Direct- 
ors decided  to  obtain  if  possible  the  opinion  of  Mr. 
Walter  W.  Palmer,  the  former  superintendent  of  the 
Ophir  Mine  at  Virginia  City,  Nevada,  and  now  a  resi- 
dent of  San  Francisco,  a  gentleman  who  stands  among 
the  first  as  authority  upon  mining,  geological  and  min- 
eralogical  developments  in  the  United  States.  And 
also  of  Dr.  John  A.  Yeatch,  whose  experience  and 
ability  upon  the  subject  has  always  secured  for  him 
the  confidence  and  esteem  of  the  mining  community 
at  large.  Mr.  Palmer  was  especially  requested  by 
telegraph  to  San  Francisco,  to  report  to  the  Company 
his  opinion  of  the  mine,  which  was  received.  The  full 
correspondence  appears  with  his  report  to  them. 
2 


18 


REPORT  OF  PROF.  WALTER  W.  PALMER. 

"  San  Francisco,  ^Uh  Nov.  1865. 
To  Moses  Chamberlain,  Esq.,  New  York  : 

Sir — I  am  in  receipt  of  your  telegram  as  follows  : 

New  York,  22c?  Nov.  1865. 
"  To  Walter  W.  Palmer,  San  Francisco  : 

Send  your  report  of  the  Smoky  Yalley  Mine,  Reese 
River,  immediately  by  telegraph,  and  one  report  by  mail. 

Moses  Chamberlain." 

San  Francisco,  md.  1865. 
"  To  Moses  Chamberlain,  New  York : 

Examined  Smoky  carefully,  prospects  remarkably  good, 
promises  to  be  one  of  the  best  mines  in  Nevada.  Particu- 
lars by  mail. 

Walter  W.  Palmer." 

"  Particulars — The  Smoky  ledge  is  situated  near  Geneva, 
in  one  of  the  canons  cutting  into  the  Toiyabe  Range  from 
Smoky  Yalley.  Austin,  the  principal  towns  of  Central  Ne- 
vada, is  in  an  opposite  canon  entering  the  range  named 
Reese  River  Yalley.  The  distance  between  the  two  towns 
across  the  ridge,  will  be  about  seven  jniles,  but  by  the  pre- 
sent road  about  fourteen  miles. 

The  two  valleys  named  run  parallel  for  a  distance  of 
nearly  two  hundred  miles,  divided  by  the  Toiyabe  range 
which  rises  from  two  to  three  thousand  feet  above  them,  its 
base  varying  in  width  from  twelve  to  twenty  miles,  courses 
nearly  north  and  south,  and  Austin  occupies  nearly  a  central 
position  and  on  the  overland  road. 

The  formation  of  Austin  on  the  west,  or  Reese  River  side, 
is  granite^  that  of  Geneva  on  the  east  or  Smoky  Yalley 
side,  slate. 

The  Reese  River  veins  are  generally  small  and  rich,  those 
of  the  slate  on  the  east  side,  or  Smoky  Yalley,  are  very 
large  and  promise  to  be  permanently  abundant  in  their 
yield  of  ore. 

"  The  Smoky  ledge  "  appears  to  me  to  be  one  of  the  best 
of  them,  and  has  had  a  little  work  done  upon  it,  both  in  the 
Smoky  mine  and  in  the  Everett  immediately  east.    The 


19 

Gonrse  of  it  13  nearly  west,  with  a  dip  of  ^S*^  to  the  north, 
into  the  hill,  considered  by  miners  to  be  itself  a  recommen- 
dation for  deep  mining. 

More  work  underground  is  required  to  enable  me  to  give 
the  width  of  the  vein  ;  at  the  surface  it  measures  from  40 
feet  to  60  feet,  without  counting  parallel  branches,  which 
are  likely  at  no  great  depth  to  incorporate  themselves  with 
tbe  main  body,   feed  it  and  give  it  additional  width. 

I  saw  a  very  fair  show  of  ore  in  the  tunnel  driven  in  from 
the  south  in  the  Smok}^  Co.'s  ground,  which  tunnel  cats  tlie 
vein  about  one  hundred  and  forty  feet  below  the  cropp.ings, 
and  I  also  saw  some  good  cropping  shews  in  the  Everett 
ground  on  the  same  vein.  I  have  seldom  seen  so  good  a 
shew  follow  such  a  small  amount  of  work.  The  Smoky  Co. 
claim  1,400  feet  of  the  choice  ground.  Every  feature  in  and 
about  this  vein  appears  to  me  to  justify  its  selection  for  the 
operations  of  a  mining  company. 

With  a  mill,  I  think  the  mine  will  require  very  little 
further  help  to  enable  it  to  develope  itself.  The  water 
power  in  the  neighborhood  of  the  claim  can  be  often  re- 
peated over  mills  of  ten  stamps  capacity  ;  one  should  be 
erected  at  once,  then  mining  recommenced  and  others,  (per- 
haps steam  mills)  as  they  may  be  required,  erected.  I  think 
that  the  first  outlay  should  be  in  the  erection  of  a  mill, 
whether  it  shall  be  a  steam  mill  or  a  water  mill,  a  small 
mill  or  a  large  one  is  a  matter  of  small  importance ;  it  is 
simply  a  tool  to  continue  the  development  of  a  large  mineral 
vein,  and  one  which  promises  to  be  exceedingly  valuable, 
KtspectfuUy  submitted, 

Walt.  W.  Falmee. 

eepokt  of   prof.   john   a.   veatch. 

Gentlemen  :  In  answer  to  your  inquiry  relative  to  the 
Big  Smoky  Mine  of  Lander  county,  Nevada,  I  beg  leave  to 
state  as  follows  : 

The  above  lode  is  situated  in  the  Smoky  Valley  mining 
district,  in  the  Toiyabe  mountain  range.  The  village  of 
Geneva  lies  within  a  few  hundred  feet  of  the  lode,  a  fine 
stream  of  water  known  as  Birch  creek  running  between  it 
and  the  mine.  I  was  informed  that  one  mile  of  this  stream 
had  been  obtained  for  the  use  and  benefit  of  the  Company 
and  mine. 

The  vein  or  lode  is  one  of  those  heavy  developments  oc- 
casionally encountered  in  the  State  of  Nevada,  which  has 


20 

astonished  the  world  with  the  quantity  and  value  of  their 
ores,  such  for  instance  as  the  Comstock  and  Nevada  Giant. 
The  outcrop  shows  a  breadth  of  upwards  of  30  feet,  its  strike 
being  north-easterly  and  south-westerly,  and  dip  about  45^ 
east. 

A  tunnel  has  cut  the  vein  as  I  am  informed  from  valid 
authority,  at  a  depth  of  148  feet  below  the  surface,  encount- 
ering vein  matter  28  feet  in  thickness,  with  a  "  pay  streak" 
ten  feet  wide.  The  tunnel  was  not  completed  at  the  time  of 
my  last  visit  to  the  mine,  but  has  since  pierced  the  ore 
channel,  and  the  developments  fully  justify  the  promise 
manifested  on  the  out-cropping.  ,  The  erection  of  a  mill  of 
the  capacity  of  50  tons  per  day,  would  be  justified  at  once 
by  the  quantity  of  ore  in  sight,  and  a  calculation  is  easily 
made  of  the  result  of  such  an  establishment.  I  know  of  no 
mine  in  the  State  of  Nevada  more  conveniently  situated  for 
working.  The  precipitous  character  of  the  mountain  imme- 
diately in  front  of  the  lode,  will  enable  it  to  be  reached  at  a 
depth  of  upwards  of  500  feet,  with  a  tunnel  but  a  little  over 
1,000  feet  in  length.  The  road  from  Geneva  to  Austin  is 
excellent,  a  distance  of  only  12  miles,  connecting  with  the 
great  daily  overland  mail  stages  and  overland  telegraph  to 
San  Francisco. 

The  character  of  the  lode  is  a  true  fissure  vein,  as  is 
proved  by  the  "  clay  casing"  on  each  side  of  the  vein  mat- 
ter where  cut  by  the  tunnel.  Its  being  a  fissure  vein  gives 
confidence  in  its  permanency ^and  persistency  in  depth,  such 
veins  never  having  been  exhausted.  The  elements  of  success 
are  evidently  combined  in  this  mine  and  its  surroundings, 
and  only  await  capital  and  skill  to  bring  its  riches  to  the 
surface.  It  may  be  well  to  also  speak  of  the  quantity  of  ore 
obtainable  from  a  channel  10  feet  wide  and  1400  feet  in 
length,  and  of  a  height  of  148  feet.  The  area  would  fur- 
nish nearly  i^00,000  tons,'  of  the  value  of  $20,000,000,  at 
$100  per  ton.  I  refrain  from  any  geological  observations  or 
speculations,  as  the  practical  man  is  only  interested  in  the 
one  question,  "  Is  the  metal  there  ?"  If  th.e  metal  exists,  it 
matters  not  what  the  age  of  the  formation,  or  what  name 
science  may  have  imparted. 

Very  respectfully  yours, 

John  A.  Yeatch, 
Mining  Engineer  and  Assay er^  late  of  Austin,  N. 


21 


CONCLUSION. 


In  presenting  the  foregoing  facts  relating  to  the  Big 
Smoky  Silver  Mining  Company's  property,  the  Direc- 
tors have  endeavored  to  present  a  plain  statement  of 
the  facts  pertaining  to  it,  which  they  have  been  able 
to  obtain  from  reliable  sources,  together  with  the  sci- 
entific reports  of  Professors  Palmer  and  Yeatch,  both 
gentlemen  of  high  standing  and  reputation,  entitling 
them  to  the  fullest  confidence  in  their  evidence  and 
reports.     ' 

The  report  of  Mr.  Morris  is  worthy  of  a  careful 
perusal,  not  only  as  an  evidence  of  the  future  great- 
ness of  the  mine,  but  in  comparison  with  the  previous 
statements  made  to  the  public. 

With  an  abundant  treasury,  the  Directors  have  the 
fullest  confidence  in  making  this  property  one  among 
the  great  silver  producing  mines  of  Nevada. 

The  management  of  the  mine  and  building  of  the 
mill  will  be  entrusted  to  the  hands  of  reliable  and  ca- 
pable men,  whose  past  success  and  experience  in  silver 
mining  entitles  them  to  the  full  confidence  of  the  board. 
The  evidence  given  of  the  truthfulness  of  the  repre- 
sentations made,  as  well  as  the  reputation  of  the  parties 
interested,  not  only  its  managers  but  those  who  have 
become  identified  with  its  interests  by  investment,  will 
commend  themselves  to  the  consideration  of  capitalists, 
that  no  fancy  picture  has  been  drawn  or  unwarranted 
estimates  made,  and  that  the  enterprise  will  be  vigor- 
ously prosecuted  in  good  faith  for  the  best  interests  of 
the  stockholders. 

The  mine  at  the  present  time  evidently  shows  but 
a  limited  amount  of  concentrated  rich  ores,  compared 
with  what  will  be  seen  by  vigorous  developments  to 
greater  depths  (as  is  already  proved  by  the  develop- 
ment of  valuable  ores  in  large  quantities  in  the  Everett 
Co.'s  portion  of  the  vein  previously  mentioned),  and 
after  a  sufficient  number  of  drifts  and  galleries  shall 


22 

have  been  opened,  whereby  an  increasing  force  of 
workmen  may  be  continually  employed.  Enough 
mineral  however  has  already  been  disclosed  in  large 
quantities  to  fully  warrant  the  highest  hopes  and  confi- 
dence of  its  future  increase  in  extent  and  richness,  as 
well  as  to  warrant  the  present  operations  of  the  Com- 
pany ;  opinions  also  warranted  by  the  fact  of  the  con- 
tinued increase  in  richness  of  the  vein  from  its  out-crop 
to  its  present  point  of  development  where  pierced  by 
its  tunnel,  the  results  of  the  working  of  which,  appears 
in  the  statements  already  given. 

Rarely  has  a  vien  of  any  magnitude  been  found  at 
the  present  day,  or  either  mentioned  in  history,  where 
sufficient  bodies  of  rich  available  ores  are  found  upon 
the  surface  or  out-crop  of  the  lode,  to  make  it  at  once 
remunerative ;  and  still  more  rare  have  been  the  num- 
ber of  paying  silver  mines  in  the  world,  where  some 
exceeding  rich  rock  did  not  appear  on  its  surface. 
Three  points  only,  upon  the  great  Comstock  Lode  at 
Yirginia  City,  of  great  richness  of  ores  were  found, 
and  only  a  few  feet  on  either  of  them  out  of  a  full 
length  of  over  16,000  feet  on  the  lode,  yet  these  evi- 
dences, (to  wit,  in  the  Gold  Hill,  Gould  &  Curry,  and 
Mexican,  in  the  Ophir  claim),  led  to  the  succeeding 
prosperity  and  productions  of  silver  in  Washoe,  whose 
history  is  already  well  known.  The  simple  fact  of  the 
presence  of  such  rich  rock  in  small  quantities,  com- 
pared with  the  large  mass  of  ore  in  sight,  led  to  the  wild 
excitement  in  silver  mining  in  1860  in  Nevada,  and 
the  supposition  that  all  quartz  veins  would  prove  silver 
mines,  induced  speculation  until  actual  development 
proved  the  incorrectness  of  the  theory,  and  led  to  the 
collapse  which  soon  followed. 

This  first  choice  of  location  upon  the  lode,  the  Big 
Smoky  Co.'s  portion  of  the  vein,  showing  various  stratas 
and  pockets  of  immensely  rich  rock,  reaching  as  high 
as  $10,000  per  ton  of  choice  samples,  has  always  been 
an  evidence  to  the  community  and  those  acquainted 
with  it  of  its  great  value.     Its  present  development, 


23 

has  given  the  conclusive  evidence  of  its  enormous  rej 
sources  and  established  the  fact  of  its  value,  which  has 
opened  the  way  for  surrounding  it  with  the  aid  of 
capital  to  make  those  resources  at  once  available. 
Two  years  of  hard  toil  and  patient  perseverance,  has 
thus  placed  it  among  the  giant  interests  of  the  State, 
which  it  so  justly  merits. 

The  melancholy  fact  cannot  be  denied  that  many 
worthless  mines  have  been  sold  in  the  East  for  large 
amounts  by  dishonest  and  unprincipled  persons,  but 
this  fact  does  not  make  good  mines  any  less  valuable, 
or  in  the  least  retard  the  sure  and  increasing  flow  of 
bullion  from  them.  If  the  generations  past,  could, 
with  their  ignorance  and  in  their  simple  and  primitive 
manner  of  working,  extract  the  fabulous  amounts  of 
silver,  which  they  are  shown  to  have  produced  by  our 
extracts  from  authority  universally  acknowledged, 
and  from  mines  no  richer  nor  more  extensive  than 
many  in  our  State,  what  can  intelligence  and  enter- 
prise, aided  by  our  vastly  improved  machinery,  and 
the  present  experience  of  our  American  people  accom- 
plish, when  once  they  fully  appreciate  and  vigorous-^ 
ly  prosecute  the  development  of  this,  one  of  our  most 
vital  interests  in  the  accumulation  of  wealth,  not  only 
to  individuals  but  to  us  as  a  nation. 

For  further  information  upon  the  subject  of  silver 
mining,  we  submit  a  few  extracts,  giving  general  in- 
formation of  the  improvements  and  progress  of  the 
Reese  River  mining  section,  the  opinions  of  the  lead- 
ing men  of  Nevada  as  seen  in  Gov.  Blaisdel's  message, 
and  a  few  statistics  from  history,  of  the  past  produc- 
tion of  the  precious  metals.  The  geological  evidences 
of  the  permanency  and  formation  of  true  fissure  lodes 
given,  will  be  found  a  matter  of  interest  in  compari- 
son with  the  Big  Smoky  mine. 

PEODTJCTION   OF   THE  COMSTOCK   MINES. 

We  present  a  statement  of  the  production  of  some 


24 

of  the  principal  mines  situated  upon  the  Comstock 
Lode  of  Nevada.  Their  great  value  for  the  last  five 
years,  as  well  as  the  millions  paid  to  their  stockhold- 
ers in  dividends,  are  facts  well  known  to  the  public. 

"  Yield  of  the  Washoe  Mines. — The  State  of  Nevada 
taxes  mines  and  requires  a  quarterly  statement  of  the  yield. 
The  following  is  a  statement  of  the  mines  in  Storey  county 
(which  includes  Virginia  and  Gold  Hill),  for  the  quarter 
ending  March  31st : 

Company.                                                     Tons.  Av.  Yield.  Gross  Val. 

Bacon  M.  <fe  Mg.  Co 2,749  |23  66  $48,260  71 

Belcher  Mine 4,540^  69  06  814,130  31 

Crown  Point 1,043  84  83  86,83100 

Confidence  G.  <fe  S.  M.  Co 2,861  32  10  90,821  30 

Bowers'  Mine 1,300  4Y  50  61, 750  00 

Eclipse  M.  (fe  Mg.  Co 1,5'72  35  34  55,568  05 

Challenge  Mg.  Co 1,526^  33  94  51,799  44 

Gould  &  Curry  Co 9,041  52  78  477,183  98 

Imperial  Co 6,397  3147  201,334  55 

New  York  &  Nevada  Co 1,464  28  80  41,950  98 

Ophir  Co : 2,266  26  48  57,712  20 

Piute  Co 2,493  30  49  76,027  85 

Potosi 9,088  33  90  308,120  92 

Savage  Co 14,480  42  06  608,319  00 

Uncle  Sam  Co ...      150  30  72  4,608  00 

C.  C.  Stevenson  &  Co 336  24  78  8,349  72 

Yellow  Jacket  M.  Co 19,201  37  50  720,107  64 

Mexican  Co 60  300  00  18,012  00 

Apple  Co 330  28  00  9,240  00 

Empire  Co 3,412  34  94  119,208  49 

Chollar  Co 11,000  40  00  440,000  00 

Total  tons 96,396  Value $3,748,835  14 

Average  value  per  ton $39  84 " 

The  natural  enquiry  arises  from  these  comparisons 
of  Reese  River  and  Comstock  ores,  how  can  mines 
producing  such  low-priced  ores  pay  the  large  dividends 
so  long  paid  by  them ;  as  for  instance,  (in  round  num- 
bers in  bullion  per  foot)  Gould  &  Curry  Co.,  $3,000, 
Ophir  Co,  $3,000,  Empire  Co.,  $18,000,  Savage^ 
$10,000,  some  company's  less  and  some  larger  amounts, 
even  as  high  as  $1,000  per  foot  per  month,  and  from 
the  average  yield  presented  above ;  and  none  except- 
ing from  the  Ophir  Go.,  have  been  free  from  assess- 
ments in  their  developments.     The  simple  reason  is, 


25 

the  large  quantities  of  rock  extracted,  and  the  cheap- 
ness of  their  reduction. 

The  expenses  of  working  the  ores  from  these  mines 
have  been  reduced  from  $35  to  $14  per  ton  ;  caused 
by  the  competition  of  mills,  the  present  reduced 
prices  of  supplies  of  all  kinds,  and  also  the  saving  of 
the  expenses  of  roasting  the  ores,  in  consequence  of  the 
great  depth  from  which  they  are  now  obtained. 

The  actual  charges  of  a  mill  company  at  Austin  for 
working  rock  in  large  quantities,  has  until  recently, 
been  $60  per  ton,  at  present  offers  are  made  at 
$45.  If  then,  the  Comstock  ores  can  pay  these  divi- 
dends, what  must  be  the  relative  production  and 
worth  to  its  stockholders  of  a  mine  fully  equal  in  size, 
and  producing  ores  so  much  superior  in  richness, 
and  when  the  expenses  of  their  reduction  shall  be 
proportionately  lessened. 

Reese  River  Reville. — "The  city  of  Austin  contains 
nearly  10,000  inhabitants,  is  in  the  Reese  River  District, 
and  its  main  street  is  the  overland  mail  road.  Daily  the 
stage  passes  to  and  fro  with  the  mails  from  'Hew  York  to 
San  Francisco,  and  the  telegraph  wires  give  us  news  at  all 
hours  from  every  accessible  point  on  the  globe.  The  dis- 
covery of  mines  caused  thousands  to  visit  us,  towns  were 
built,  mills  erected,  and  at  this  early  day,  under  all  the  dif- 
ficulties of  a  want  of  capital  to  develop  this  immensely  rich 
country,  we  are  now  exporting  monthly  the  amount  of  $150,- 
000  in  silver." 

Mining  Under  Yirginia  Cfty. — "  As  an  evidence  of  the 
steady  increase  in  the  production  of  silver  in  Nevada,  we 
submit  the  statistics  of  the  quarterly  report  ending  August 
1st,  1865,  of  the  amount  produced  within  the  city  limits  of 
Virginia  City.  These  statistics  are  obtained  from  the  city 
assessment  roll,  amounting  in  round  numbers  to  $7,168,000, 
giving  to  this  small  space  alone  the  sum  of  $28,672,000  per 
year  in  silver  bullion." 

Commercial  List,  N.  Y. — "  General  attention  has  been  at- 
tracted to  the  development  of  the  lodes  of  silver  ores  discov- 
ered in  Nevada,  on  the  eastern  slope  of  the  Sierra  Nevada 


26 

mountains.  The  wealth  of  this  region  is  almost  bejond 
estimate,  and  the  receipts  of  some  of  the  mining  companies 
put  the  richest  of  our  oil  wells  to  blush.  As  an  example, 
the  Gould  &  Curry  Mining  Company  of  Nevada,  mined 
during  the  year  included  from  December  1863,  to  December 
1864,  65,000  tons  of  ore,  which  realized  the  modest  sum  of 
$4,898,000.  The  Ophir,  Savage,  Empire  and  many  other 
companies  in  the  silver  region  have  met  with  like  success, 
and  the  astonishing  mineral  wealth  of  Nevada  has  induced 
the  formation  of  many  new  companies,  several  of  which 
have  been  organized  lately  in  this  city." 

The  "  Mining  News"  of  San  Francisco,  says  : — "  The 
Empire  Mill  and  Mining  Company  which  has  paid  to  its  own- 
ers up  to  November  30th,  1864,  dividends  in  coin  amounting 
to  $1,043,720,  effected  these  results  solely  from  their  own 
labor,  and  without  advancing  a  dollar  of  capital.  Another 
silver  mine  of  Nevada  realized  a  profit  of  $1,600  per  day  on 
an  outly  of  cash  under  $80,000,  as  follows  : 

15  tons  of  ore  per  day,  at  $125  per  ton $1,875 

Deduct  cost  of  rhilling,  extracting  and  hauling  to 

mill 375 

Net  profit  in  coin  per  day 1,500 

Per  month  of  26  days 39,000 

Per  annum  of  300  working  days 450,000 

The  State  of  Nevada,  with  a  population  of  40,000  inhabi- 
tants or  less,  took  out  of  her  mines  in  gold  and  silver  bullion 
during  the  year  1864,  as  is  shown  by  the  statistics  of  ex- 
ports, more  than  $30,000,000. 

YiKGiNiA  Daily  Union. — ''From  the  mines  in  the  vicinity 
of  Virginia  City,  (Nevada,)  within  a  tract  of  not  more  than 
25  square  miles,  there  has  been  shipped  within  the  last 
twelve  months  some  $20,000,000  worth  of  silver,  and  this 
from  a  few  of  the  principal  mines.  The  next  year  will  more 
than  double  this  sum,  and  within  five  years  it  is  certain  that 
the  annual  yield  will  be  over  $100,000,000,  for  unlike  the 
gold  mines  of  California,  silver  lodes  are  inexhaustible,  grow- 
ing richer  as  they  descend  into  the  bowels  of  the  earth. 
The  actual  cash  value  of  the  mines  in  the  vicinity  of  this 
city,  the  price  for  which  they  could  be  sold  in  a  country 
where  gold  is  the  standard  of  value,  where  common  labor 
commands  from  4  to  5  dollars  a  day,  is  not  less  than 
$100,000,000.     The  Gould  &  Curry,  Ophir,  Chollar,  Potosi, 


27 

Hale  &  N'orcross,  California,  Central,  Mexican,  Yellow 
Jacket,  Belcher  and  Crown  Point  Company's,  contain  in  all 
not  quite  11,000  feet.  In  segregated  claims  in  Gold  Hijl 
and  vicinity  there  is  not  less  than  5,000  feet,  ranging  from 
$500  to  $20,000  per  foot,  and  worth  in  the  aggregate  fully 
$15,000,000.  We  have  endeavored  to  give  a  fair  and  rea- 
sonable estimate  of  the  value  of  mining  interests  alone.  And 
there  is  still  room  here  and  at  Reese  Rivers,  and  Humboldt, 
for  thousands  of  men  who  are  willing  to  work  for  a  few  years 
for  a  fortune,  that  a  life-time  of  toil  would  not  bring  in  any 
other  portion  of  the  republic." 

GOVERNOK   BLAISDEL   ON   MINING. 

Governor  Blaisdel,  in  his  recent  message  to  the  Ne- 
vada Legislature,  says : 

"  Silver  mining  to  us,  five  years  ago,  was  entirely  new  y 
and  it  is  not  to  be  wondered  at  that  we  should  make  seriou^ 
mistakes,  both  in  mining  and  in  the  construction  of  work^ 
for  the  reduction  of  ores,  and  the  economical  management 
of  everything  connected  therewith ;  but  with  our  experi- 
ence, the  future  in  this  respect,  should  be  comparatively 
safe.  Mining  is,  and  long  will  be  our  paramount  interest. 
It  is  a  well  established  fact  that  exceedingly  rich  veins  of 
minerals  exist  in  almost  every  portion  of  the  State ;  and 
valuable  discoveries  are  constantly  being  made.  In  many 
new  localities  ores  are  found  wiiich  will  pay  $40  and  upward 
per  ton,  but  are  not  being  worked  with  much  profit,  owing 
to  the  lack  of  capital  to  erect  machinery  for  their  vigorous 
development  and  reduction,  but  this  obstacle  is  being  rapid- 
ly overcome.  Many  men  of  extensive  means,  during  the 
last  few  months  have  been  giving  attention  to  the  new  dis- 
tricts, and  are  preparing  for  the  opening  of  these  mines,  and 
the  erection  of  extensive  works  next  summer.  "When  the 
true  value  of  our  mines  is  more  thoroughly  known  abroad, 
which  must  be  during  the  next  year  or  two,  I  have  no  hesi- 
tation in  sayina:  that  abundance  of  capital  will  seek  invest- 
ment within  our  borders ;  and  where  now  we  contribute 
thousands  to  the  metallic  currency  of  the  world,  we  shall 
produce  tens  of  thousands.  And  when  the  great  Pacific 
Railroad  is  completed  across  our  State,  many  mines  that  are 
now  considered  of  but  little  worth,  will  be  worked  with 
much  profit.  It  is  not  only  in  the  precious  metals  our  State 
abounds,  for  copper,  lead,  iron,  sulphur,  alum,  borax,  salt 


28 

and  soda,  are  found  in  ^reat  abundance,  but  at  present  are 
considered  comparatively  valueless ;  but  with  the  facilities 
for  transportation  v^hich  we  have  good  reason  to  hope  for 
within  a  few  3  ears,  many  of  these  baser  minerals  will  be  a 
source  of  great  wealth. 

The  Inexhaustibility  of  True  Fissure  L6de8. — One  of 
the  most  important  lessons  of  mining  experience,  taught  by 
all  the  principal  authorities  is,  that  the  true  fissure  lodes  are 
continuous  geologically  and  inexhaustible  practically,  al- 
though a  point  may  be  reached  where  the  extraction  of  ore 
ceases  to  be  profitable,  from  its  immense  depth.  A  true  vein, 
according  to  Prof.  Whitney,  is  a  fissure  in  the  solid  crust  of 
the  earth  of  indefinite  lengttj  or  depth,  which  is  filled  more  or 
less  perfectly  with  mineral  substances ;  or  in  other  words  an 
aggregation  of  mineral  matter,  accompanied  by  metalliferous 
ores,  within  a  crevice  or  fissure  which  had  its  origin  in  some 
deep-seated  cause,  and  may  be  presumed  to  extend  for  an  in- 
definite distance  downwards.  According  to  the  theory  ac- 
cepted by  geologists  generally,  the  fissure  was  made  by 
some  internal  convulsion,  and  while  it  stood  open  it  was 
filled  up  with  the  veinstone,  the  ores  coming  in  vapors  from 
the  intensely  hot  regions  below,  and  crystallizing  or  con- 
densing in  the  vein.  The  theory  implied  continuity  in  the 
vein  and  inexhaustibility  in  the  mineral.  The  fissure  veins 
always  have  a  veinstone  differing  in  geological  character 
from  the  wall,,  which  are  usually  distinctly  marked.  Thick- 
ness of  lode,  steepness  of  dip,  distinctness  and  hardness  of 
wall-rock,  difference  in  character  of  the  two  walls,  differ- 
ence in  character  of  wall  at  different  parts  of  the  vein,  occur- 
rence of  horses  similar  in  geological  character  to  the  hang- 
ing-wall, and  clay  seams  that  appear  to  have  been  formed 
by  the  grinding  of  the  veinstone  against  the  walls,  are  all 
important  evidences  of  a  true  fissure  vein. 

All  the  great  silver  lodes  now  producing  any  considerable 
amount  of  metal,  are  considered  to  be  true  tissure  veins.  The 
mines  at  Cerro  Pasco,  in  Peru,  have  been  worked  since  1643, 
yielding  $450,000,000,  and  are  still  productive.  The  Potosl 
mines,  opened  in  1545,  have  contributed  $1,000,000,000  to 
commerce,  and  are  not  yet  exhausted.  The  mines  of  Guana- 
juato and  Zacetecas  have  been  worked  about  three  centuries, 
and  together  they  have  yielded  more  silver  than  Potosi,  and 
they  are  still  among  the  most  productive  of  the  world.  Ala- 
mos, in  Sonora,  has  been  an  important  silver  mining  district 
for  two  hundred  years.  The  mine  of  Gaudalonpe,  in  Calvo, 
in   Chihuahua,    though  it  has   been  worked  thirty  years, 


29 

yielding  in  some  years  as  much  as  $1,000,000,  is  not  yet 
abandoned.  The  mines  of  Sombrerete,  discovered  in  1670, 
were  worked  with  great  profit,  one  of  them  yielding  $20,000 
per  day  for  five  years,  until  1698,  when  they  were  closed  by 
a  law  suit,  and  then  rerfdered  inaccessible  by  the  accumula- 
tion of  water.  Thus  they  remained  for  nearly  one  hundred 
years,  until  a  bold  man  came  along,  re-opened  them,  and 
took  out  in  a  few  years  $13,000,000,  and  the  mines  are  still 
considered  to  be  rich.  Santa  Eulalia,  in  Chihuahua,  was 
worked  for  eighty  years,  and  was  then  abandoned,  not  be- 
cause of  exhaustion,  but  on  account  of  the  hostility  of  the 
Indians.  Chanarcillo,  in  Chili,  has  yielded  about  $2,000,000 
annually,  for  more  than  thirty  years,  and  no  one  anticipates 
any  interruption  of  its  productiveness  in  our  time.  Real  del 
Monte  is  rich  to-day,  though  it  has  been  prominent  for  its 
production  of  silver  since  the  middle  of  the  sixteeth  century, 
with  no  interruptions  save  those  caused  by  the  want  of  wa- 
ter and  drain  tunnels.  The  silver  mines  of  Hanover  and 
Saxony  are  not  exhausted,  though  they  have  been  worked 
since  the  middle  ages.  Nine-tenths  of  the  silver  yield  of 
Spanish  America  and  Europe  comes  from  veins  that  were 
opened  more  than  two  hundred  years  ago,  and  have  been 
profitable  ever  since.  Not  one  of  them  has  the  features  of 
continuity  more  strongly  marked  than  the  Comstock  lode, 
and  few  of  them  promise  to  yield  more  silver.  Some  are 
wider,  others  have  been  traced  farther,  and  others  have  richer 
ore,  but  no  other  has  produced  $35,000,000  within  three 
years,  or  has  been  worked  with  so  much  energy,  or  offers 
such  facilities  for  deep  draining,  ventilation,  and  the  extrac- 
tion of  the  ore. — Alta  Cat. 

The  weekly  circular  of  the  San  Francisco  Stock 
and  Exchange  Board  of  July  16,  present  the  fol- 
lowing statistics  of  the  product  of  the  various  silver 
mines : 

"The  receipts  in  this  city,  of  uncoined  gold  and  silver 
from  California  and  Nevada  since  January  1st  (6^  months), 
amounted  to  $21,500,000,  showing  an  excess  of  $2,500,000 
as  compared  with  a  like  period  of  last  year,  when  the  Placer 
mines  were  yielding  more  abundantly.  These  figures  clearly 
indicate  the  increasing  importance  and  value  of  the  Washoe 
mines,  and  we  doubt  whether  any  other  interest  on  this 
coast  can  now  present  such  attractions  to  those  who  ma}^  in- 
vest at  present  prices.     No  business  is  likely  to  give  more 


30 

assured  profits,  if  regularly  and  legitimately  pursued.  Tfie 
most  important  gold  and  silver  regions  of  this  continent,  and 
perhaps  of  the  world,  are  those  of  California  and  Nevada. 
Their  development  has  multiplied  the  production  of  the 
precious  metals  every  where  else,  and  our  metalic  scorings 
upon  the  tablet  of  the  future  are  never  to  be  erased.  It  may 
be  of  some  interest  to  speak  in  this  connection,  of  the  pro- 
ductions of  gold  and  silver  in  other  portions  of  the  great 
chain,  extending  north  through  South  America,  Central 
America,  and  Mexico.  The  principal  mineral  wealth  of  the 
world  has  been  found  in  tlie  mountain  region  which  over- 
looks the  Pacific  ocean.  For  three  hundred  years  the  Span- 
iards in  Mexico,  Peru,  and  other  South  American  Colonies 
have  been  extracting  silver  and  gold  from  the  veins  of  the 
metamorphic  rocks.  From  the  year  1550  to  1790,  Hum- 
boldt estimates  their  production  to  have  been  $5,000,000,000, 
and  from  1790  to  1830,  $910,000,000  is  the  estimated  yield, 
of  which  latter  sum  Mexico  alone  produced  $708,000,000  in 
silver.  The  great  mine  at  Potosi,  formerly  in  Peru  but  now 
in  Buenos  Ayres,  has  been  worked  since  1845,  and  Ure 
estimates  the  entire  yield  of  the  veinsaround  this  mine  to 
have  been  $1,600,000,000.  We  thus  see  what  has  been  ac- 
complished in  the  southern  portion  of  the  same  ran^e, 
which  doubtless  runs  through  this  State  and  Nevada,  and 
where  mines  have  been  worked  in  the  rudest  manner.  With 
us  all  the  resources  of  modern  science  will  be  taxed  to  find 
out  the  best  way  of  working,  cheaply  and  thoroughly,  the 
ores  that  are  found,  and  many  new  processes  will  be  dis- 
covered from  time  to  time." 

'' The  presence  of  silver  in  immense  masses  is  a  pculiarity 
of  Nevada,  and  will  prove  in  the  course  of  time  more  bene- 
ficial to  her  and  to  the  country  than  the  deposits  of  gold. 
The  hills  and  mountains  are  full  of  it,    and  frequently  both 

fold  and  silver  are  found  in  such  localities  mixed  together.  ' 
'he  powers  of  production  of  silver  mines  may  be  estimated 
by  the  following  statistics,  taken  from  the  history  of  silver 
mining  in  Mexico  : 

The  San  Dimas  mine,  in  Durango,  yielded  over  $1,000,- 
000  a  year,   for  25  years. 

The  Zavello  mine  yielded  over  $20,000,000  a  year. 

The  Pavillion  mine  yielded  over  $20,000  a  day,  giving  to 
its  shareholders  over  $6,000,000  annually. 

The  Sombrerete  mine  yielded  in  about  seven  months,  some 
25  years  ago,  a  clean  profit  to  its  shareholders  of  $5,000,000. 

At  Zacetecas  there  is  hardly  a  mine  which  has  not  had  a 
rich  yield  of  silver  of  some  millions. 


31 

One  mine  alone  at  Avaseo,  gave  to  its  shareholders  in  a 
few  years,  $45,000,000. 

The  Galego  mine  in  the  years  1829  to  1835,  gave  $11,- 
000,000  to  its  shareholders. 

The  mines  in  Nevada  are  situated  in  the  same  mountain 
range  as  those  of  Mexico,  which  belt  the  continent  from  the 
frozen  seas  to  the  Isthmus  of  Panama.  And  they  are  no 
less  rich  than  the  m^st  productive  of  Mexico." 


1   ] 


I 


